Ann: Form 604, page-13

Very much agree, but think this is largely due to active managers hijacking the ETF title.

It should be mandated that any active manager should be forced to call it "Exchange Traded Managed Fund or ETMF".

ETF should be left to passive, low cost index funds. this is the only way new investors won't be hoodwinked.

The biggest distinction, and most important, is closed versus open. This distinction cannot be stressed enough, and all new investors should be aware of the acute difference.

That is why I take exception to people referring to closed funds as ETFs or the like. Investors need to know the difference and the risks posed by closed funds.

Although both closed and open have their advantages and disadvantages, the massive discounts across the board for closed funds at the moment are a sign of changing times.

You don't need to invest in AFIC anymore to get access to a fund manager on the exchange - ETFs, ETMFs, Smart Beta, Cross listed managed funds are taking over and ridding the premium/discount sagas of closed funds.

The only closed funds that seem to stay close to par or above are the WAM stable. And let's face it, they have earned their reputation for advertising performance BEFORE fees and confusing the world about the effects of franking credits.